Tech Dogs of the Dow

By Kurt Brouwer

I have written about the so-called Dogs of the Dow before (see here and here). These are large, out-of-favor companies in the Dow Jones Industrial Average. Here is another way to look at Dogs of the Dow. Famous technology companies (Hewlett-Packard, Cisco, Intel, Microsoft, IBM) which were once high fliers are now lagging far behind other technology stocks, hence they are now Tech Dogs.

The first chart shows the Tech Dogs performance up to 2000 and the second chart illustrates how they have done in this latest stock market rally:

So far in 2011, large company stocks have been outperforming small and mid-sized companies, but the Tech Dogs of the Dow are still lagging with a bit of an exception for IBM which has done pretty well in this rally.

About Fundmastery Blog

Kurt Brouwer is a fee-only financial advisor with three decades of experience. He is the chairman and co-founder of Brouwer & Janachowski, LLC. Kurt has written books, articles and hundreds of blog posts on mutual funds, ETFs and other investment topics. E-mail: kurt.brouwer *at* gmail.com.